Legislature

Popular bill that could save Colorado $60 million a year languishes

Put in simple terms, Colorado taxpayers lose out on $164,383 every day House Bill 1005 isn't signed into law, yet the legislation has languished on the floor of the state House for weeks.

The daily financial loss, estimated by the Colorado County Treasurers' Association, represents the amount taxpayers aren't earning from investments counties and other local governments would be allowed to make under the bill — investments that are allowed in every state except Colorado.

Under current Colorado law, local governments can't invest in government-backed securities that have less than two triple-A ratings. However, last year's historic and shocking downgrade of federal securities by Standard & Poor's rating agency meant that historically solid investments in U.S. securities are now prohibited for local governments in Colorado.

The state bill would change that, allowing county treasurers, cities and school districts to park taxpayer money in these otherwise proven investments, which still produce high earnings.

County treasurers say they're baffled as to why the bill, which unanimously passed out of the House Finance Committee on Feb. 2 after a brief hearing with no opposition testimony, has been laid over in the House every day since Feb. 8.

"Every day it sits there, it costs us money," said John Lefebvre, Weld County treasurer and legislative chairman for the county treasurers' association.

The estimated annual cost to Colorado taxpayers for not changing the investment law is about $60 million.

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Lefebvre, projecting his county would lose $600,000 a year if the law isn't changed, said House leaders aren't telling treasurers why the legislation isn't moving.

"They've just stonewalled us. They haven't relented or told us why our bill is being held up," he said. "I can't imagine that there'd be a single entity that opposes the bill."

It doesn't appear the issue lacks bipartisan support. Rep. Dan Pabon, D-Denver, is sponsoring the bill in the House, while Sen. Ted Harvey, R-Highlands Ranch, is sponsoring it in the Senate.

And among those pushing for the bill is state Treasurer Walker Stapleton, a Republican, who called the legislation critical.

"This is a bipartisan piece of legislation that is sorely needed," Stapleton said. "It's costing county treasurers money, real dollars. I just think that it's an important piece of public policy that we need to get across the finish line."

House Speaker Frank McNulty, R-Highlands Ranch, did not respond to repeated attempts to obtain comment. However, a spokesman, Owen Loftus, said, "Different bills move at different paces."

Pabon said that when he has asked Republican leaders about the delay, "they said there were political issues that had to do with supporters of the bill" but didn't elaborate.

The bill continues to cost taxpayers an estimated $6,849 per hour it remains unacted on, or about $114 per minute.

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